Digital games tax proposed by SA government

[Denouncer]

What if the content you buy is hosted in the cloud? In a tax free state or country? You just stream to local. :P

If it is used on a South African PC at any stage, it would be considered "imported". At least, that's how SARS seems to have defined it when I dealt with them. However, there could be a way around this for a lot of companies, but they'd need to employ some clever tax lawyers. There's an element of the VAT law that allows companies to zero-rate their products if the services involves "the granting, transfer, assignment, or of intellectual property rights, including copyrights provided the rights are used outside of the Republic". So, if Steam say that by downloading a game with them, they are granting a specific license that remains in the domain of US law, for example, the products should therefore be charged at 0% VAT. They'd just have to approach SARS and get a ruling on it for it to come into affect. But, it's a complicated business, and, well, it's SARS :P

[Ike_009]

I would argue that nothing is being imported since nothing has been past customs.

And the definition in the VAT administration act would disagree with you. I can get an official quote later this afternoon.

[Coheed]

Good luck on implementing that SARS. Argh, hoist the Jolly Roger me mateys!

[Strifehart]

Good luck on implementing that SARS. Argh, hoist the Jolly Roger me mateys!

Well there's already FPB ratings implemented on Steam, so don't discredit the possibility of this happening just yet.

Seriously though, fuck these greedy assholes.

[Icenflame]

Well there's already FPB ratings implemented on Steam, so don't discredit the possibility of this happening just yet.

Seriously though, fuck these greedy assholes.

I know that it may seem harsh and I'm against excessive tax just like anyone else, but might I point out that Tax revenues are how countries run, putting all the 'mal administration' aside if no tax comes in the country falls into a deficit and if you've studied maths and economics running in the red is never a good thing.

Tax pays for roads and upgrades I know we all moan about how terrible service delivery is, as bad as it is now imagine not having money to operate the 'basic' services we generally receive, if it be on a limited basis.

One could get angry and shout out about VAT and Tax but if you want to live in society and the economic model that currently exists as Quoted by Benjamin Franklin: "The only things certain in life are death and taxes."

[Mister 44]

If it is used on a South African PC at any stage, it would be considered "imported". At least, that's how SARS seems to have defined it when I dealt with them. However, there could be a way around this for a lot of companies, but they'd need to employ some clever tax lawyers. There's an element of the VAT law that allows companies to zero-rate their products if the services involves "the granting, transfer, assignment, or of intellectual property rights, including copyrights provided the rights are used outside of the Republic". So, if Steam say that by downloading a game with them, they are granting a specific license that remains in the domain of US law, for example, the products should therefore be charged at 0% VAT. They'd just have to approach SARS and get a ruling on it for it to come into affect. But, it's a complicated business, and, well, it's SARS :P

I think I want you to do my taxes this year

[ViperGTI]

Well there's already FPB ratings implemented on Steam, so don't discredit the possibility of this happening just yet.

Seriously though, fuck these greedy assholes.

I was thinking the same thing. Steam seems to comply with the various countries' requirements which is why certain games are already "Not available in your region". Hopefully there will be a way around it.
Gamersgate already have some kind of a presence in SA so they might comply so perhaps there are some other digital distributors out there. (I've heard the name Greenman Gaming being thrown around a couple of times).

[HavocXphere]

Is there anything they *haven't* taxed yet?

[Lyt]

Meh, they just want more money in their pockets...as if paying R500+ for games isn't enough already. I doubt this will ever happen though, they have no way to enforce it.